Amazonization has changed insurance marketing – Insurance News

Amazon seems inevitable these days. From getting groceries through Amazon Fresh to buying last-minute birthday gifts, I’m constantly amazed by the ease, convenience, and speed of securing what I need. Now, I’m also looking for Amazon-like conveniences on other services. When I can’t find them, I wonder:

Where are the consumer reviews?

Why can’t I easily compare this product with other similar ones?

Why is my information not automatically completed during checkout?

These widespread shifts in consumer expectations are affecting virtually every industry in an increasingly complex marketing ecosystem. In a 2024 Harvard Business Review Analytic Services survey of executives involved in marketing decisions, 77% of respondents said their organization faces “some” or “a lot” of complexity in its marketing ecosystem.

These pressures have likely been exacerbated by “Amazonization,” and insurance marketers are not immune. The ability to quickly compare prices and features has become a cornerstone of how consumers buy insurance, and “parallel products” are less sticky as consumers have become more open to comparing offers to find the best deal. In response, consumer targeting has had to become more personalized to meet people’s stage of the insurance journey.

Fintech startups have moved into this space with agility and have quickly become competitive with traditional brands. For example, digital insurer Lemonade has achieved extreme efficiency for its Gen Z target group, boasting that consumers can apply and get paid in just three minutes, while prospective consumers can get a quote for a new package in 90 seconds. In an additional dimension of “Amazonfication,” Lemonade’s carousel of consumer reviews on the insurer’s homepage. This seamless user experience helped increase the insurer’s revenue by 281% between 2019 and 2022.

However, legacy brands can have complex legacy ecosystems that can make it difficult to serve consumers efficiently. A surprising, streamlined tactic is emerging to restore their competitive edge: direct mail.

A turning point for insurance

As more fintechs and other brands target audiences via digital channels, consumers become increasingly overwhelmed by everything competing for their attention on screen. In 2023, the average person saw 10,000 online display ads every day.

This digital burn has made the inbox a safe space. In the 2024 Direct Mail Marketing Benchmark Report, 45% of consumers indicated that mail is less overwhelming than other forms of marketing. Additionally, 54% of consumers will save an interesting message to return to later, and 52% will search for a brand name and visit a website to find a relevant message. As of 2024, 84% of marketers agree that direct mail provides the highest ROI of all channels they use.

Next Generation: Direct Mail with a Tech Twist

If the above data surprised you, your idea of direct mail may be out of date. It’s a common assumption that print-based “snail mail” tactics are just the same old postcards and flyers they’ve always been. Not so. Today’s senders are equipped with a variety of features and capabilities to trigger action, measure results, and create personalized touchpoints:

Deep Insights on Authentic Connections
Data analytics is commonly associated with digital targeting, but its applications are not limited to the internet. At Quad, our core dataset includes 260 million consumers, mapped to a robust identifier: a physical home address combined with additional data and contextual insights that can be activated across any media channel.
Direct mail optimization
Direct mail testing has always existed. A decade ago, marketers lived in a boring, drawn-out schedule of sending a mailing, waiting weeks for results, making adjustments, and sending a new round. Today, tools like Accelerated Marketing Insights allow you to quickly test different direct mail approaches to optimize them before committing to any mailing.
Tracked replies
Marketers can now use technology tools within direct mail to help consumers take the next step and facilitate the offline-to-online connection. Flowcode is a unique QR code solution that tailors direct mail to individual customers, allowing marketers to send consumers personalized digital content. Marketers can also collect customer data and correlate scan activity with conversion rates.

Direct Advertising: A Non-Negotiable Campaign Element for Insurance Brands

“Amazonization” has changed consumer expectations and the way they shop for insurance. This has increased the challenge for insurance marketers, but direct mail is experiencing a resurgence as a marketing star. It offers traditional insurance brands a way to authentically connect with consumers and regain a competitive edge. Always a staple of integrated campaigns, insurance brands would be wise to seize this moment to update, enhance, and prioritize their direct mail.

Erin Slater is Quad’s head of financial strategy and services. Contact her at (email protected).